Global EV market likely to reach $2,108 billion by 2033: Axis Securities report

The global electric vehicle (EV) market, which is valued at $255 billion as of 2023, is expected to reach $2,108 billion by 2033, reported the news agency ANI, citing an Axis Securities report on Saturday, September 28.
The growth will be fueled by a compound annual growth rate (CAGR) of 23 per cent from 2024 to 2033, reflecting the increase in global demand for sustainable mobility solutions, as per the report.
Axis Securities forecast estimates that the Indian EV market can reach 10 million units of annual volumes by 2033, a rise from 1.7 million units in the financial year 2023-24, according to the agency.
The transformation of the EV industry will be fueled by a combination of government policies, the launch of new products, the falling cost of bill of materials (BoM), and rapid technological advancements, as per the report.
India is expected to be at the forefront of the EV revolution, and over the next 10 years, significant EV adoption is expected across three-wheelers (3W), two-wheelers (2W), electric buses, and passenger vehicles, etc, reported the agency.
The EV segment is anticipated to grow further as infrastructure improves and affordable models enter the market, said the report.
The Government has allocated a total of ₹10,900 crore in subsidies over the next two years to promote the adoption of EV two-wheelers, three-wheelers, and buses, reported the agency.
The scheme aims to support 24.79 lakh sales of two-wheelers, 3.16 lakh sales of three-wheelers, and 14,028 sales of e-buses. Each two-wheeler will receive a subsidy of ₹10,000, while the electric three-wheelers will receive ₹50,000 until March 2025, as per the report.
To increase the adoption of electric trucks and ambulances, ₹500 crore has been allocated for e-trucks, with incentives linked to scrappage certificates from approved scrapping centres. Another ₹500 crore has been set aside for the deployment of e-ambulance, which includes hybrids, as per the report.
The development of charging infrastructure is a critical aspect of promoting EV adoption. The government has committed ₹2,000 crore to establish public EV charging stations across India, reported the agency.
The money is aimed at supporting the installation of 22,100 fast chargers for EV four-wheelers, 1,800 chargers for EV buses, and 48,400 chargers for electric two-wheelers and three-wheelers, according to the report.
In an effort to make EVs affordable, the government of India has introduced favourable tax rates for EVs. Electric cars are taxed at 5 per cent, compared to 28 per cent on hybrid vehicles and a 49 per cent tax on internal combustion engine (ICE) vehicles, reported the agency.